12. respondent used the 938,347 rins identified in ... refining lp , agreement ; aed/mseb # 8159 :...
TRANSCRIPT
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C.
In the Matter of: Administrative Settlement
WRB Refining LP , Agreement AED/MSEB # 8159
Respondent.
This Admin istrative Settlement Agreement (ASA) is made and entered into by and between the
United States Environmental Protection Agency (EPA) and WRB Refining LP (Respondent)
having an office at 30 I 0 Briarpark Drive, Houston, TX 77042.
Purpose:
I. The purpose of this ASA is to resolve Respondent ' s alleged violations of the Clean Air
Act (CAA) and the Renewable Fuel Standards regulations promulgated thereunder at
40 C.F.R. Part 80, Subpart M (RFS2 Regu lations).
Statutorv and Regulatory Authority:
2 . Section 21 J(o) of the CAA, 42 U.S.C. § 7545(0), as amended by the Energy
Ind ependence and Security Act of2007, Pub. L. No. 110-140, 121 Stat. 1492, required
EPA to promulgate regulations designed to increase the amount of renewable fuels used
in transportatio n fuel in the United States, lower greenhouse gas emissions, and reduce
the nation's reliance on foreign-sourced petroleum.
3. The RFS2 Regulations require renewable fuel producers and importers to generate and
assign Renewable Identification Numbers (RINs) in proportion to the amount and type of
renewable fuel that they produce or import. 40 C.F.R. §§ 80.1425, 80.1426.
4. 40 C.F.R. § 80.1406 defines an obligated party as "any refiner that produces gasol ine or
diesel fuel within the 48 contiguous states or Hawaii, or any importer that imports
gasol ine or diesel fuel into the 48 contiguous states or Hawaii during a compliance
period."
5. 40 C.F.R. §§ 80.1427(a) and 80.1430 require each obligated party and each expotter of
renewable fuel to demonstrate compliance with its Renewable Volume Obligation (RVO)
by obtaining and retiring the number ofRINs required by the calculation set forth at
40 C.F.R. §§ 80.1407 or 80.1430.
6. 40 C.F.R. § 80.143 l(a)(l )(vi) provides that a RIN that does not represent renewable fuel
as defined in 40 C.F.R. § 80.1401 is invalid, and 40 C.F.R. § 80.l43l(a)(l)(ix) provides
that a RIN that was improperly generated is invalid.
7. 40 C.F.R. § 80.1460(c)(l) states that no person shall fail to acquire sufficient RINs, or
use invalid RINs, to meet the person's RVO under 40 C.F.R § 80.1427.
8. 40 C.F.R. § 80.1461 (a)(l) states that any person who violates a prohibition under
40 C.F.R. § 80.1460(a)-(d) is liable for the violation of that prohibition.
9. 40 C.F.R. § 80.1463(a) provides that any person who is liable for a violation under
40 C.F .R. § 80. I 46 I is subject to a civil penalty as specified in sections 205 and 21 I ( d) of
the CAA, 42 U.S.C. §§ 7524 and 7545(d), for every day of each such violation.
l 0. 40 C.F.R. § 80. I 463(b) provides that any person who is liable under 40 C.F.R.
§ 80.146l(a) for a vio lation of40 C.F.R. § 80.1460(c) for fai lure to meet its RVO is
subject to a separate violation for each day in the compliance period.
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11. Sections 205 and 211 ( d) of the CAA authorize EPA to assess a civil penalty of up to
$37,500 per day for each violation, plus the economic benefit or savings resulting from
each violation. 42 U.S.C. §§ 7524, 7545(d).
Background:
12. Respondent used the 938,347 RINs identified in Attachment A (the Subject RINs), wh ich
were generated by Global E Marketing, LLC (Global E Marketing) to meet its 20 11
RVO.
I 3. EPA alleges that the Subject RINs are invalid because Global E Marketing generated
these RTNs for which the applicable renewable fuel volume was not produced.
14. Respondent represents that it implemented remedial actions by removing the Subject
RJNs from all applicable RFS2 annua l compliance reports, replacing the Subject RINs
that were needed to meet its RVO, and resubm itting corrected reports to EPA, as required
by 40 C.F.R. § 80.143 l(b).
15. Respondent represents that it believed that the Subject RINs were valid at the time it
acquired the Subject RTNs and at the time it used the Subject RTNs to meet its RVO.
16. EPA and Respondent (the Parties), desiring to settle and resolve this matter, in
consideration of the mutual covenants and agreements contained herein, which
consideration is acknowledged by the Parties to be adequate, agree as set fo1th herein. By
agreeing to the terms of this ASA, Respondent makes no admission of law or fact with
respect to any of the allegations set forth in this ASA.
Violations:
17. EPA alleges that Respondent violated section 21 l(o) of the CAA, 42 U.S.C. § 7545(0),
and 40 C.F.R. § 80.1460(c)(l) by using the Subject RJNs to meet its 2011 RVO.
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Terms of the Agreement and Civil Penalty:
18. In any enforcement o r penalty action arising out of this ASA or the subj ect matter of this
ASA:
a. The Parties agree that the settl ement of this matter is in the public interest and that
this ASA is the most appropriate means ofresolving the matter; and
b. The Parti es further agree that jurisdiction to settle th is matter exists pursuant to
sections 205 and 21 1 of the CAA, 42 U.S.C. §§ 7524 and 7545, 40 C.F.R. Part 80,
and other provisions of law.
19. Jn March of 2012, and January of2013, EPA published Interim Enforcement Response
Policies to resolve violations arising from the use of invalid 20 l 0, 2011 and 2012
biomass-based diesel RINs (IERPs). The IERPs cap penalties for qualifying use
violations in connection with invalid 2010, 201land2012 biomass-based diesel RINs at
$350,000. Since Respondent has already paid a civil penalty of $350,000 to resolve
violations in connection with invalid 2010 and 2011 biomass-based diesel RINs,
Respondent is not required to pay any additional penalties to resolve the violations
described in this ASA.
General Provisions:
20. This ASA becomes effective upon the date executed by EPA (effective date of the ASA),
at which time a copy will be returned to Respondent.
21. Notwithstanding any other provision of this ASA, upon Respondent's fai lure to pe1form,
or default, or failure to comply with any term of this ASA, EPA may refer this matter to
the United States Department of Justice to recover civil penalties pursuant to section 205
of the CAA, 42 U.S.C. § 7524, commence an action to enforce this ASA, or pursue any
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other remedies available to it. Respondent specifically agrees that in the event of such
default or fai lure to comply, EPA may proceed in an action based on the original claim of
violations of the CAA and the regulations promulgated thereunder at 40 C.F.R. Part 80.
Respondent expressly waives its right to assert that such action is barred by 28 U.S.C.
§ 2462, any applicable statute of limitation, or other provisions limiting actions as a result
of the passage of time.
22. The Parties represent that the individual or individuals executing this ASA on behalf of
Respondent are authorized to do so and that such execution is intended and is sufficient
to bind Respondent, its agents, assigns, or successors.
23. Respondent waives its rights, if any, to a hearing, trial or any other proceeding on any
issue of fact or law relating to the matters consented to herein.
24. The validity, enforceability, and construction of all matters pertaining to this ASA shall
be determined in accordance with applicable federal law.
25. This ASA .is contingent upon the truthfulness, accuracy and completeness of
Respondent's disclosures and representations to EPA in this ASA.
26. This ASA .is effective upon execution by the Parties, and may be signed in counterparts,
electronically t ransmitted or otherwise de livered, each of which will be deemed an
original.
Effect of ASA:
27. This ASA is deemed to resolve the EPA's civil claims for the violations alleged in
Paragraph 17 and all other violations of40 C.F.R. Part 80, Subpart M, arising from
Respondent's use of the Subject RINs to meet its RVO.
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28. The resolution ofclaims set forth in Paragraph 27 shall take effect on the date this ASA is
executed by EPA. Nothing herein shall lim it the right ofEPA to proceed against
Respondent in the event of default or noncompliance with this ASA, for violations of
section 2 11 of the CAA, 42 U.S.C. § 7545, which are not the subject matter of this ASA,
for other violations of law, or with respect to other matters not within the scope of this
ASA. This ASA in no way affects or relieves Respondent of responsibility to comply
with other state, federal , or local laws or regu lations.
SIGNATURES ON FOLLOWlN G PAGES
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Administrative Settlement Agreement - In the Matter of WRB Refining LP AEDIMSEB #8159
The following agree to the terms of this ASA:
WRB Refi ( 1g LP
' ~ Date: ~~2 7/ )(J, (.
TypedorPrintedName:
Typed or Prin ted Title: [ \) eRe.hf\1 ng, -fh,\\,p? /pt;, e::, ~~tpt1v\.j kr- W'tn R.t:'hn,ucr
Federal Tax Identification Number: CdO · f5"cp;5 S/.__?
By: ,
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Administrative Settlement Agreement - Jn the Matter of WRB Refining LP AEDIMSEB # 8159
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